The dollar / yen soared on Monday as US Treasury yields rose after President Joe Biden reappointed Jerome Powell for a second term as Federal Reserve chairman. A movement interpreted as hawkish by investors.
Biden announced Monday morning that Powell was his choice for the central bank head appointment in a closely watched move. The president appointed Fed Governor Lael Brainard, seen as the main contender for the top job, to the post of vice president.
On Monday, USD / JPY stood at 114.869, up 0.846 or + 0.74%.
If Brainard had been appointed head of the Fed, many expected more accommodative monetary policy, meaning it might have taken the Fed longer to withdraw its emergency stimulus measures.
Technical analysis of the daily swing chart
The main trend is downward according to the daily swing chart. A trade through 114.969 will change the main trend upward. A move to 113.591 will signal a resumption of the downtrend.
The short-term range is 112.728 to 114.469. His retracement zone at 113.849 to 113.584 is support.
Technical forecasts of the daily swing chart
The direction of the USD / JPY early on Tuesday will likely be determined by the reaction of traders at 114.969.
A sustained move above 114.969 will indicate that the uptrend is strengthening. If this move is able to generate enough bullish momentum, look for acceleration towards the main high on March 10, 2017 at 115.501, followed by the main high on January 19, 2017 at 115.615.
A sustained move below 114.969 will signal the presence of sellers. If this move creates enough bearish momentum, then expect the sell to eventually expand to 114.280.
Counter-trend buyers could enter a test of 114.280. They will try to form a potentially bullish secondary upper bottom. If it fails, look for a possible retest of 113.849 to 113.584.